Minutes from the Federal Reserve’s September meeting show that most policymakers expect another interest rate hike before year-end to rein in inflation that has run above the 2% target for more than five years. However, the summary provided no indication of whether the increase would come in October or December. The quarter-point hike approved in September was unanimous, and 16 of the 18 FOMC members who submitted forecasts expect another increase this year, followed by no hikes in 2027. The personal consumption expenditures price index showed core inflation at 3% and headline inflation at 3.4% in August, both below expectations. U.S. Treasury yields have climbed to levels not seen since 2002, while a New York Fed survey shows consumer fears about rising prices over the next year at their highest since May 2023.
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